Business Agreement Guarantees Assets are Funded, Operational Through Expected Market Recovery
VANCOUVER, BC / ACCESSWIRE / October 30, 2024 / Western Wealth Capital ("WWC"), a real estate investment company, today announced a new partnership with StepStone Group Real Estate LP ("SRE"), a subsidiary of StepStone Group Inc., a global private markets investment firm, initiated by the recapitalization of WWC's apartment portfolio. The recapitalization and strategic partnership have resulted in the refinancing of a large, geographically-diverse portfolio with 10 assets (and one additional pending), consolidating lenders, and placing moderately leveraged debt sized for the current market cycle. It will also ensure each asset has appropriate levels of working capital and growth funding to implement value-add programs.
Western Wealth Capital's Asteria Apartments in Tempe, Arizona.
This recapitalization marks a big milestone for Western Wealth Capital by appropriately funding these assets and putting its portfolio in a stable position moving forward as well as preserving flexibility to sell assets at an optimal time.
"We are grateful for StepStone and their shared vision of our real estate investment strategies and their recognition of our operational strengths, long-standing history, and success," said Janet LePage, Co-Founder and CEO, Western Wealth Capital. "This is an extraordinary opportunity not only for us to invest alongside a firm with significant experience sponsoring recapitalization investments in private real estate, but for our investment partners to participate and capitalize on future returns if they choose to do so with a firm of this scale and caliber."
This transaction will facilitate the refinancing of a portfolio of 11 assets consisting of 2,750 units operated by Western Wealth Capital including nine of which consisted of a five-year, fixed rate financing with Freddie Mac. A portion of StepStone's $200 million commitment will be applied to making near term and future equity investments, allowing WWC to take advantage of opportunities specific to each community as well as the changing market.
"Our long history with Freddie Mac, track record, portfolio size, and credit rating all contributed to securing the business agreement," LePage explained.
John Waters, Partner and Head of Investments at SRE added, "this partnership allows us to increase our exposure to the multifamily sector alongside a strong manager that is well-equipped to continue to add value to the portfolio."
Additionally, WWC can now move forward with pursuing prospective real estate opportunities in top growth markets such as Phoenix, Las Vegas, Atlanta, and Dallas.
"For business-friendly locations with employment and population growth, there is a clear and increased demand for housing," LePage said. "These are key markets where fundamentals drive rental demand and support sustained investment opportunity."
Jones Lang LaSalle Securities, LLC, an affiliate of Jones Lang LaSalle Americas, Inc. ("JLL"), served as exclusive financial advisor to WWC. Latham & Watkins LLP served as counsel to StepStone and Goodwin Procter LLP served as counsel to WWC. JLL also worked on behalf of the WWC team to secure the five-year, fixed-rate loan through Freddie Mac. The loans will be serviced by JLL Real Estate Capital, LLC, a Freddie Mac Optigo Lender.
Learn more at https://www.westernwealthcapital.com.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 110,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Western Wealth Capital
WWC offers investment partners the opportunity to invest, through a proven system, in properties with substantial value-add opportunities. WWC's vision is to build wealth for its investment partners with exceptional returns. A people-first approach promotes excellence at every point; with highly efficient operations and a true commitment to their communities.
Contact Information
Heather Austin
Public Relations, Western Wealth Capital
heather@theferrarogroup.com
602-738-9252 cell
SOURCE: Western Wealth Capital
View the original press release on newswire.com.
